Also known as: debts · indebtedness
Written by attorneys · grounded in primary & secondary sources — see below
A monetary obligation owed by one party to another arising from agreement judgment or operation of law.
Diana Delgado borrowed funds from Dakota Industries to purchase a warehouse. She executed a mortgage pledging the warehouse as collateral for the loan. When Diana missed several payments Dakota Industries initiated foreclosure proceedings to recover the outstanding amount from the property sale.
Congress enacted legislation authorizing the Treasury to issue bonds and collect taxes. The proceeds were used to discharge existing federal obligations including pension payments and interest on prior borrowings. The statute specified uniform rates across all states.
Select any source to read its text and confirm it supports the definition.
Dillon Energy formed Decker Electronics as a limited liability company to manufacture components. Decker Electronics failed to pay a supplier invoice of $180000. The supplier sued the company's sole member Daniel Diaz personally but the court dismissed the claim against him.
Devon Drake joined Delta Dynamics after it registered as a limited liability partnership. The firm later defaulted on a bank loan incurred during its LLP status. The bank sought recovery from Devon personally but the court held him not liable.
Daphne Doyle owed Destiny Davis $45000 under a contract that became unenforceable due to the statute of limitations. Daphne later wrote a signed letter acknowledging the full amount and promising to pay it in installments. Destiny sued to enforce the new promise and recovered the sum.
Deanna Davenport served as general partner in a limited partnership that borrowed $900000 from a lender. She dissociated from the partnership two years later. The partnership defaulted on the loan and the lender pursued Deanna for the amount incurred during her tenure as general partner.
A mortgage or other security device must secure an obligation typically a debt or promise to pay. The necessity and nature of the obligation determine whether the mortgage is valid and enforceable. If the obligation is void or discharged the mortgage may be extinguished or unenforceable.
A promise to pay all or part of an antecedent contractual or quasi-contractual indebtedness owed by the promisor is binding if the indebtedness is still enforceable or would be except for the effect of a statute of limitations. A voluntary acknowledgment admitting the present existence of the antecedent indebtedness also supports enforcement.
A person's dissociation as a general partner does not of itself discharge the person from any debt obligation or other liability to the limited partnership or the other partners which the person incurred while a general partner. The person remains liable for partnership obligations incurred before dissociation.
…racial restrictions on the right to marry lacked a compelling justification. In Zablocki , restrictions based on child support debts did not suffice. In Turner , restrictions based on status as a prisoner were deemed impermissible. None of the laws at issue in those cases purported to change the core definition of…